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Ncrveaber 22, 1934* 

Sine-lQilS A.M. 
MBunRA«rtB| ypR MR. TAMM 

a wwl tui^|>iif>n i«”ii ■ > i » TrlBE 



„ Curiae & telephonic conversation with Colonel 
Ga teethe Colonel asked if we had anything on the 
SnedlegrButler Case. X stated that we did not have 
anything. The Colonel stated that the newspapers 
were beginning to press hi* concerning it, and the 
/Baltlaore Sun has the atoiy that the De part — a t of 
Justice doesn’t know whether General Butler id hawing 
, just another ’•brainstorm* or that, and the\#ew Toxic 
Evening Post telephoned bin and informed tti-a that 
sons pep er in Sew loxk had the story that the Depart- 
\ sent of Justice was going to investigate Snedlwgr Butler. 

X told the Colonel that we were not going to 
investigate General Butler, according to any knowledge 
X had. 

Very truly yours, 

1 copy 


Mr, Nathan j.-- 

Mr. To! son 
Mr. Clefri? 

Mr, Baughman 

Chief Clerk 

? i Coffey 

. -1 r. Cowley J 

Mr. Edwards jj 

:..r. C~an 
r/r. liar bo. 

r..r* Keith 

w,r. Lester .... 

iv. r. Quinn 

Mr. ScltlldeK, 

!..** i'j »n m 5 

Mr. Tracy 

John Edgar Hoover, 

BBOOBDHD ^ i . r> : : / J 



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Butler a Fighting Paradox; 
Says War Is a Racket 

“War ” said Major General Smed-of Public E'afety. 
ley Darlington Butler, U. S. M; C.» When he discovered that the poli- 
retired, whose tearlessness in action ticians had enlisted his services 
is part of the American military merely as a respectable “front” for 
saga, f ‘is the most vicious racket their activities, he fought the poli- j 
known to man.” . ticians. 

The fighting Quaker was address- He has fought for Prohibition and 1 
ing the Congregation B’nai Jeshu- against it..' 

run, 233 West Eighty-eighth Street, His avowed purpose in his Phila- 
on Armistice Day. delphia clean-up campaigns, was to 

This utterance is typical of the enforce the dry laws, 
unaccountable, fascinating, forceful, . But time and again, in speeches, 
pugnacious personality that is in articles, he condemned the Vol- 
Smedley Darlington Butler, ruth- stead Act. 
less, “treat-’em-rough” soldier in Denounced Dry Law 

; war, relentless, barb-tongued cru- That law, he said in an address 
] sader for peace. • - at Oakland, Cal., a year or two 

l Butler, slim, frail, weighing less after he quit trying to clean up 

ithan £&fi»@du£ds, is a living paradox. Philadelphia, was supposed only “to 
Born into the Society of Friends, keep liquor away froqHftiKflQg .with-, 
he has fought, on every imaginable out influence.” 

* kind of* front, for at least thirty- This statement was all the more 
: seven of his fifty-three .years. amazing as it followed his charges 
He fought in the Spanish-Ameri* of drunkenness against Colonel 
cah : with 1 McCall’s men at' 'Alexander. Williams, of. the 'San; 
Guantanamo and Manzanillo. .He Diego Marine Base, his host at a 

fought in Cuba, the Philippines, dinner in his honor, who was sub- 

China, Nicaragua, Mexico and Hayti. sequently court martialed. 

; ->In corpmand-atBrest, Francer^ui;^ ^The-famous “lealherneckl’-himselfc. 
in'g the World War, he fought the was threatened with court martial] 
pestilential conditions at that port proceedings in 1931, when he hadj 
of. entry for the American troops, been- fighting a one-man battle with I 
built . roads, paved streets* erected Premier Mussolini, whom he char- 
water works, put in running water,, actgrized as “a’ hit-run driven” 'But- 
built barracks . and hospitals. ler got off with a mild reprimand! 

He fought in China, he fought at The dynamic Marine's latest fight ( 
, Vera Cruz. . was with the National Broadcasting 

So bravely and conspicuously did Company, which, last October, cut 
he fight, that he received two Con- him off the air at Louisville, where, 
gressional Medals of Honor; an addressing a convention of the Vet- 
Army Distinguished Service Medal, erans of Foreign Wars, he made 
a Navy Distinguished Service Medal, reference to “turning food into 
a brevet medal and an offer of the fertilizer” and “marines making 
Victoria Cross. He was a brigadier whoopee in the red-light district/’ 

general at thirty -nine, a major gen- 
eral at forty-eight. 

Major General Butler is a de- 
scendant of long lines of Quakers 

But America’s far-flung battle on both sides. His father was chair- 
fields were not the only fronts on man of the House Naval Affairs! 
which “Old Gimlet* Eye” Butler Committee. The General was born ’ 

l fought. 

in West Chester, Pa. He lives with 

* He fought the underworld and his wife, the . former Miss Ethel 
I the bootleggers of Philadelphia Peters (a Quaker, "too), whom, he 
(when, in .1924 and 1925, that city married twenty-ninq» girripflu mgo at 
“bor rowed” hi m from the Marine Newtown Square, Pa. They have i 
l CorpTTMil* iliade him its Director three children. ] 


; ‘ i “I h&v 


Broker’s Employer Backs Up 
Refutation of General’s 
'Fascist’ Accusations 

* Gerald C. MacGuire of 52 Broad- - 
way denied today that he offered. 
Major General Smedley D. Butler 
an opportunity to lead a Fascist 
movement here and make, himself 

His employer, Grayson Meller- ■ 
Provost Murphy, financier, called . 
Butler’s story “a damned lie.” 

A third man named by the former • 
Marine Corps leader, Robert Ster- ! 
ling Clark, millionaire broker of 11 i 
Wall Street, is in Europe and will . 
not return for several weeks. 

1 Admits Meeting. Butler j 

MacGuire, a bond salesman who 
has been . with . Murphy’s firm .five 
years, said he met- General Butler 
several years ago. Seen at his pri- 
vate office on the twelfth floor of 
52 Broadway, he said: 

“The thing was. General Butler 
was always coming around to me j 
with books and letterheads from all i 
these crackpot organizations,, and I 
i would keep telling him: 

I “General, you’re a damn* fool 

| to fall for all those outfits. You’ll 
1 he holding the bag. Vigilantes of 
' the West, and so on. . None of fliem 
j fascists, just crackpots.* - I 
rTve kept him out of plenw of 
tiouble and this is. what he dogs to 
show his gratitude. Everybody told 
me not to trust' him; that he would . 

his publicity stunts on his fast 
but I always thought he was 
I a sduare shooter. '-.J. 

I "fdon’t know whether 1*11 asK for 
8 a retraction or sue for libel. I guess 
I will just be the goat in public and 
Vm probably^through here. 

^“I’ve ^talked ^to*" Butler many~ a 
time, and I talked, to' French (Paul ! 
Comly French, Post reporter), when : 
Butler sent him here, but I .deny 
that I ever said anything about a 
Fascist organization.** 

u t haven’t had time to do anything 
about this yet,**. Colonel Murphy 
said. “I haven’l been^able to stop 

“1 hope you came in armed, be-* 
cause I may start shooting, even if 
this is going to be a bloodless revo- 

To say & thing, like this about a. 

Has Decided Course 

Colonel Murphy continued smil- 

1 .}°*: ! 

i “ I haven’t decided what, if any- 
thing, I’m going to do about the 
ittory. I do not say that the story 1 
may be perfectly responsible in so 
far as the Post’s part in it is con- 
cerned, but its irresponsible as it ap~ 
plies to me. I never gave out any 
checks, and I say the whole thing 
in so far as it relates to me is a 
damned lie. 

“I can;t speak for Mr. MacGuire.) 
I can’t say what action the firm will ; 
take in- relation to him. 1 don’t 
know all the facts. 

“I do know that Mr. MacGuire 
has been very active in legion af- 
fairs. What kind of affairs I don’t' 
know. But we gave him a leave of 
absence to work, on legion affairs, 
after he brought in the commander 
— I- don’t remember what year or-j 
what the officer’s name was.” 

Talks in Plaintive Tone j 

MacGuire' is short, quite heavy}) 
with a small, bullet-shaped head; 
jlose-croppcd, and bright blug eyes 
Denying General Butler’s story, he ! 
talked in a plaintive voice with a 
mint East Side accent. ! 

i During the war, he said, he served \ 
on the n&vy transport Aulus, but j 
he would not say what his rank was. 

“I always thought General But- 
ler was a square-shooter,” he said i 
I sadly. \ 

i "We were going to the Army- 
Navy game together next week gnd. 

I haven’t telephoned him yet, and 
I don’t know whether I will.” 

His employer. Colonel Murphy, is . 
tall, heavy-set and impressive look- ! 
ing. He has thin, silver hair, bright 
blue eyes and he smiled constantly 
during the interview. 

Murphy served In the Spanish- 
American War and the World War. 
/and spent several years in the regi! 
i ular army after graduating fromr 
West Point. In the World War. his! 
services won him the Distinguished, 
Service Medal, Officer of the Legion 1 
of Honor, Commendatore of the ] 
Order of the Crown of Italy and 

say. that a. man who would sene his- 
country like that would turn azgnind 
and try to overthrow the Govern- 
ment, is hitting below the belt.” 

6 > ;? 

Commander of the Order of Leopold 
II tof Belgium. 

J Goes to Wall Street 1 

Originally a doctor for financially 
sicf corporations, he attracted me 
attention of J. P. Morgan & Co. ap'd 
other big Wall Street interests. 

As a result, along with his com- 
mission and issue brokerage busi- 
ness; he received many important 
appointments to represent financial 
interests. Among the firms he has 
been connected with as president, 
chairman, officer or director are: 

Foreign Credit Corporation, Uni- 
ted States Distributing Company, 
Guaranty Trust Company, Foreign 
Commerce Corporation, Aviation 
Corporation, Liberty National Bank, 
Goodyear Tire and Rubber Com- 
pany, Interborough Rapid Transit 
Company, New York Transportation 
Company, Fifth Avenue Coach 
Company, Graymur Corporation, 
New York Trust Company, Textile 
Banking Company, Bethlehem Steel 
Corporation, Youngstown Sheet and 
Tube Company, Cuba Cane Sugar 
Company, Omnibus Corporation, 
Royal Indemnity Company, Ameri- 
can Ice ,Qompany,. New York Rail- 
ways Company, ‘United States and 
Foreign Securities Corporation, Na- 
tional Aviation Corporation, and 

f m a ny-ft*h a m ■ 

r Robert Sterling Clark haT a 
rath* r lavishly furnished, but rimall 
,offiefe on the eleventn floor oi the 
iStolk Exchange. \ 

f Hfe is traveling somewhere in Al- 
geria at the present time, and no one 
seems to know just how he can be 
reached;. He may return in the 
.spring. MacGuire became his friend 
! after making his acquaintance in 
the relationship of bond salesmen 
an dwealthy investor. 

'Clark, now between fifty-five and 
sixty, was graduated from West 
Point and served with the Ninth 
Infantry during the Boxer Rebel- 

He is one of four brothers who 
inherited the sewing machine 
wealth of their father, the late Al- 
fred Coming Clark, who was one 
of the founders of the Singer Sew- > 
ing Machine Company. The senior ; 
Clark left 85,000 shares of stock in j 
the company to his widow and sons I 
when he died in 1896. Later the’ 
boys received their mother’s share. 

During his service ip the army, 
he gained considerable publicity 
when he entertained on a lavish 
scale while on duty in Washington. 
One party, it was reported at the 
time, cost $30,000. A train was j 
hired to bring the guests from New | 
Yorlc. ! 

While he was in China he was i 
granted leave to travel in the in- 
terior on an exploring expedition.) 
His regiment, the Ninth; was bri- 
gaded with the Marine regiment in 
which Butler was serving afi a 
youthful officer. 

Morphy a West Pointer 

Clark is an ardent horseman, tall 
and .healthy, but not as well known' 
in that field as his brother, F. Ami 
, brose Clark, .one of the three brothf 
ers whom he sued to break control 
iof at trust in Which he had placed 
| his share of the $80,000,000 estate 
I left by his father. 


November 22, 1934* 

Ti*e~l U2Q P«l» 

During a telephonic conversation with Mr* Carusi, 

X was questioned as to Aether we were doing anything 
about the SmedleyJButler Ceee* 

X stated that we were not, that the coaaaittee had 
not brought it to our attention; and that X had noticed 
that Ur* HcComack, the Chairman of the Committee, had 
oade a statement in Hew Xozfc to the effect that the 
natter had not been referred to the United States 
Attorney, Hr* Coaboy. X further stated that X was not 
aware Aether Hr* CoatOy bed been ha touch with the 
Committee or not, but that X did know that none of 
our men had been. 

Ve*7 tnSy yours. 


1 copy 

John Edgar Bearer, 

Mr. Nathan 

Mr. Tolson 

Mr. Clegg 

Mr. Baughman 

Chief Clerk 

Mr. Coffey 

Mr. Cowley, X-. 

Mr. Edwards 

f Mr. Egan 

jj Mr. Harbo..,,v^. 

I Mr. Keith ,;_w. 

\ Mr. Lester 


Mr. Quinn 

Mr. Schllder 

Mr. Tamm 

-Mr. Tracy section 



wnwe of mvE6rn«oo^ 
A 21 OFrAOTwarr ># justks 


. i 

e- ^ 


Ex-Chief of NRA and Others 
Brand Tale of Fascist Plan 
as False; Probe Ordered 

NEW YORK, Nov. 21 (I.N.S.)— 
Placed squarely on the hot spot 
by Gen Smedley D. Butler's as- 
tounding testimony, Gerald P. 
MacGuire, youiig bond salesman* 
was to appear before the Dick- 
stein Committee today to repeat 
his denials that he ever urged 
General Butler to march on .Wash- 
ington with a “Fascist” army. 

Named by the fiery Marine 
Corps Veteran as the intermedi- 
ary in a plot of Wall Street in- 
terests to overthrow President 
Roosevelt with a force of 500,000 
ex-service men, Mr. MacGuire was 
to be examined on a- number of 
circumstantial details contained 
in General Bigler's charges. 

Despite the mirth, sarcasm 
and explosive * indignation with 
which the charges were denied by 
various eminent officials men- 
tioned in the “conspiracy,” the 
Congressional committee on un- 
American activities intends to 
“sift the matter to the bottom.” 

Dickstein Comments 

Representative Samuel Dick- 
stein, vice chairman of the com- 
mittee, said: 

“From present Indications 
Butler has the evidence. He’s 
not going to make any serious 
charges unless he has something 
to back them up. We’ll have 
men here with bigger names 
than his.” 

Representative Dickstein said 
about 16 persons mentioned by 
General Butler would be subpoe- 
naed and that a public hearing 
might be held next Monday. 

Besides the men General Butler 
mentioned in his testimony before 
the committee, there was a report 

that he had told friends in Phila- 
delphia the dictator of the new 
“Fascist Government” was to be 
General Hugh S. Johnson. When 
General Johnson learned of this, 
he barked: 

“He’d better be pretty damn 
I careful. Nobody said a word to 
1 me about anything of this kind, 
and if they did I’d throw them 
out of the window. I know noth- 
ing about it.” 

There was no official comment 
from President Roosevelt, who is 
in Warm Springs, Ga., but it is 
known that when he heard of 
the “conspiracy” which was to re- 
lieve him of his job he laughed: 

I The substance of General But- 
ter’s charges. was substantially: 

\ That Mr. MacGuire had asked 
him to organize war veterans into 

f| a Fascist army with dues of $1 a 

That Mr* MasGuire arranged 
a meeting between him and 
Robert Sterling Clark, financier, 
regarding a speech urging that 
America remain on the gold 
standard— a speech which it was 
hoped General Butler would 
dellyer before the Chicago Amer- 
ican Legion 'cnventi on. 

Mae Arthur Named - 

That if General Butler re- 
jected the offer to lead the 
Fascist army the command would 
be offered to Gen. Douglas Mac- 
Arthur, army chief of staff, or 
to Hanford MacNider, former 
national commander of the Amer- 
ican Legion. 

According to General Butler's 
testimony as made public, It 
was hoped that President Roose- 
velt would “go along” as the 
King of Italy did with Mussolini. I 
If he did not he and the Vive- 
Presidenfc would be forced to 
resign after appointing a new 
Secretary of State, who would 
succeed to the Presidency and be- 
come “dictator.” 

General Butler was also quoted 
as saying that Mr. MacGuire had 
tossed $18,000 in 18 bills on the 
bed 1 of the 'General’s room in a 
Newark Hotel to “pay his ex- 
penses” in Chicago if he agreed 
to make the “gold standard” 

He also said that Mr. Mac- 
Guire showed him a bankbook 
with deposist of $64,000 to “take 
care of expenses’* in Chicago. 

Mr. MacGuire, denying all the 
charges, said: 

“It’s a joke — a publicity ptunt. 

I know nothing about it. The 
matter is made out of whole 
oloth. I deny the story com* 

Broker Denies Butler 
Story of Fascist Plot 

PARIS, NOV. 21 (I.N.S.).— Rob- 
ert Sterling Clark, New York 
broker, candidly told Interna- 
tional News Service today that he 
had “strongly urged” Maj. Gen. 
Smbdley D. Butler, “to use his in- 
fluence in favor of sound money , 
and against inflation.” but he 
flatly denied allegations that he 
had sponsored, an American 
Fascist movement. 

Threatening to take action 
against General Butler “for any 
libels which may have been com- 
mitted,” Mr. Clark expressed' com- 
plete mystification concerning 
the general’s charges that a 
Fascist coup was plotted. 

Mr. Clark was located at his 
small residence in a fashionable 
section of -Paris. He is here part- 
ly for his health, but he said he 
would willingly return to the 
United States if at any time Con- 
gress wanted to question him in 
connection with General Butler’s 
stoty. He asserted: 

“I heard of General Butler’s 
charges, for the first time this 
morning, when I read the Paris 

“I just can’t believe it! 

“Why, General Butler and I 
were in the Army together In 
China, when we marched bn 
Pekin during the Boxer Rebel- 
Mon. . n 

“I was a guest in his home 
about a year ago. Then 1 urged 
1 him strongly to use his influ- 
| ence in favor of sound money 
f and against Inflation.” 

iiovember 21, 1934* 







Jt&feum ttf 

JS. JsL Jbjjmrfcnmtt of H/wstice 
pfasJjhtgtott, ®. 

November 22, 1934 


Confirming the information conveyed to MrsNjg el'Iey 
yesterday, afternoon, you are advised that the Division files 
contain no record of Gerald G^MacGuire^ 


Ee A. Tamm 

23 1984 




rTZ, ' / r, rs — I 

JJLJL<£-Z ,C', I _ i 

DIVIS;' 1 *: Of I-Wrs7;GA~K)» 

NO'. IS ,.34 r.k 
u, s. or justice 


1934 FILE 


















Undeveloped leads in your 
district awaiting attention 

s->t J Z+ 

Mr, Nath*r». 

Mr. Cle**. M!#IB1(>U( 
Mr. Baughman ...... 

ChJef Clertf„..., 

M Fi -Coffey 

Mp, Cowley 

Mr. Edwards......... 


Mr, Keith 

Mr, Ta??un ....kTu„.. 
Mr, Traoy 

*N.B. Delinquent or expedite cases routed to you for 
report or attention must be covered not later than date 
indicated - Otherwise return this with explanation at once! 


• * 

$3,000,000 BID 

Says He Was Asked to Lead 
500,000 for Capital 
‘Putsch’ f, 



Copyright, 1984 , btf New York Poet, Jnc . 

. Major General Smedley D. Butler revealed today 

fie has been asked by a group of wealthy New York 
brokers to lead a Fascist movement to set up a dic- 
tatorship in the United States. 

General Butler, ranking Maj'or General of the 
Marine Corps up to his retirement three years ago, 

J told his story today at a secret session of the Con- 

, gressional committee on un-American activities. 

j - JBfi f p re he appeared before the committee, Gen- 
feral Butler gave the New York Post a detailed ac- 
count of the offer made to him. 

“Of course I told the leaders of this Fascist 
movement that 1 wasn’t interested in Fascism or in 
any other ism,” Butler said with characteristic vigor, 
“and that I wouldn’t consider any such proposition. 
“The whole affair smacked of treason to me.” 

He said he' was approached by Gerald G. MacGuire, who 
Is connected with the firm of Grayson M,-P. Murphy & Co., 
62 Broadway, and asked to organize 500,000 veterans into a 
Fascist army. 

'A “Show of Force”— Not Blood '1. 

"ahuftly after MacGuire first came to see me,” General 
Butler continued, "he arranged for Robert Sterling Clark, a 
New York broker, to come to my home at Newtown Square, 
pa., to see me.” - 

Clark, who maintains offices at 11 Wall Street, is re- 
ported to be worth more than $50,000,000. 

General Butler then outlined the details of the plan. He 
said MacGuire assured him “they have $3,000,000 ‘on the line* 
to, t start the organization.” “n f . ^ 


Butler -related a conversation he had with Mac- 
Guire on August 22 at the Bellevue-Stratford HU 181 IRThila- 

“The upshot of his proposition was that I was to head 
a soldier organization of half a million men, that this group 
.would assemble— probably a year from now— in Washington, 
and that within a few days it could take over the functions 
of government. To be perfectly fair to Mr. MacGuire, he 
didn’t seem bloodthirsty. He felt that such a show of force 
in Washington would probably result in a peaceful overturn 
iof the Government. He suggested that 'we might even go 
along with Roosevelt and do~with him what Mussolini did 
With the King of Italy.’ 

The “Man on the White Horse” 

“Mr. MacGuire insisted that all of his program was 'con- 
stitutional,’ ” continued the General. He proposed that the 
Secretary of State and Vice-President would be made to re- 
sign, by force, if necessary, and that President Roosevelt 
Would probably allow MacGuire’s group to appoint a Secretary 
of State. Then, if President Roosevelt was willing 'to g<J 
along,’ he could remain as President. But if he were not in 
avmnat.hv with the Fascist movement, he would be forced to 
resign, whereupon, under the Constitution, the Presidential 
succession would place the Secretary of State in the White 

“Then he discussed the need for a 'man. on the white 
Horse,’ and insisted that a show of armed. force was the only 
Way to save the capitalistic system. 

i “He told me he- believed that at least half of the Ameri- 
can Legion and Veterans of Foreign Wars would follow me. 

$25,000 for Study Abroad 

“I was amazed at the audacity and bluntness with which 
.the proposition. was put to me. I have, always believed in 
democracy, and I felt it my duty to learn all I could of this 
Conspiracy and to see that the information was placed in the 
Hands of the proper governmental authorities.” 

General. Butler then told how MacGuire described a long 
jtrip he (MacGuire) had taken to Europe during the spring 
land summer of 1934 to study the Nazi and Fascist organiza- 
tions in Germany and Italy, and the pact World War veterans 
played in both movements. 

“MacGuire told me that his European junket .had cost 
$25,000,” said General Butler. “He said that he took his wife 
and children with him. I asked him where he got so much 
money, and he told me that friends of his had put it up, and 
Were willing to put up much more if I would head their move- 
ment in this country. 

| - Two Other “Candidates” 

!?• “MacGuire explained to me that they had two other 
Candidates for the position of 'man on the white horse.’ He 
feaid that if I did not accept, an offer would be made to Gen- 
eral Douglas MacArthur, chief of staff of the United States 


^Fascist Army Plan\ 
Bared by Ex-Marine 

Says He Was Offered $3,000,000 to 
Organize Capital "Putsch” 








Continued from Page One 

Army, whose term of office expires November 22, and that 
the third choice, would be Hanford MacNider, former com- 
mander of the American Legion. So far as I know, neither 
General MacArthur nor MacNider has been .approached. 
Their names were merely mentioned as 'alternates.' 

“This conversation I had with MacGuire at the Bellevue- 
. Stratford had been preceded by others in which he spoke 
chiefly of swinging the American Legion national convention 
into line for retention of the gold standard. One of those 
conve rsations was in a hotel in Newark, N. J., when I was 
— attending- a reunion of the Twenty-ninth Divisioli? 89 

Thousands Offered — for What? 

“At that time, MacGuire came into my hotel room, pulled 
out a worn wallet, and started to toss thousand-dollar bills on 
the bed; I asked him what the hell that was for, and he told 
me it was to pay my expenses to Chicago, to make a speech in 
favor of the gold standard. 

“ ‘You know damn well it doesn’t cost $18,000 to go to 
Chicago,' 1 told him. 

“ ‘Don’t be a fool, General,’ he told me. ‘Why don't you 
idb like Harbord and Sims did andimake some money out of 
it? The Government doesn’t take - care of you, so why don’t 
you .act like a business man?’ 

“I told him to pick upi the money before I threw him out. 

*’ I then suggested that one of the men who were providing all 
* these thousand-dollar bills come and see me, so I would know 
who was back of it all.- ■ 

- “ ‘Murphy (Grayson M.-P. Murphy of the brokerage firm: 

that bears his name) is in Europe,’ he told me, ‘but I’ll have 
Colonel Clark come to Newtown Square on Sunday.’ 

Called “Bribe” by Butler 

“Clark called me on Saturday from New York, and re- 
minded me that we had served together in China in the 
Boxer trouble in 1900, He told me he would like to come and 
see me and discuss old times. 

“Clark came to my home the following day and offered 
me money to go to Chicago to make the speech on the gold 
standard which MacGuire had previously given me, Mac- 
s, Guire told me he wrote the speech, but Clark said that John 
“ W. Davis, Democratic Presidential candidate in 1924, lud 
written it. After we discussed the proposition for i^Few 
'J ihjinutes, I told Clark he ought to be ashamed to come into 
a man’s home and try to bribe him.” 

Financial B^Htg Displayed 
General Butler explained that he had sat in at live 
different conferences with MacGuire. He said thv first time 
\ MacGuire saw him he brought a man named Doyle, described 
as a wounded veteran. He said that MacGuire. and Doyle 
dj-ove up to Butler’s home in a limousine, and that on the 
occasion of that visit MacGuire showed the General a bank 
book with deposits or$64,000 and said that was ‘to take care 
of my expenses’ to the American Legion Convention at which 

Ijvas, to_make^ a speech in favor of retention of the gold 

standard. ’ ' 

“At the same time he showed me several checks, drawn 
for large amounts, signed by Robert Sterling Clark, John 
Mills and Grayson M.-P. Murphy, which he said were to be 
placed in his account to cover ‘necessary’ expenses at the 
Chicago convention. 

“Several months later, when I asked MacGuire who was 
backing his movement to set up a dictatorship, he said, “The 
same people that financed the Chicago propaganda.’ 

^ ‘At all times,” said the General, “I refused to accept any 
money from any of these men.” * — — — * 

General Butler and the writer of« 

this article, both subpenaed by 
the Congressional committee, went 
to the Bar Association Building 
ihortly after 11 o’clock this morning. 

Examination of the General was 
begun immediately by Representa- 
tive John W. McCormack of Massa- 
chusetts, chairman of the commit- 
tee, behind closed doors. 

MacGuire was subpenaed to ap- 
pear before the committee at 4 P. M. 

Process servers for, the cdfnmifr 
tee tried to subpena Clark today, j 
but he is in Europe and will not 
return for several weeks. 

About September 1 General But- 
ler had a long series of speaking en- 
gagements, carrying him through 
the Middle West. The writer of 
this article, a reporter for the New 
York Post and the Philadelphia 
Record, was called in by General 
Butler about September 1. The 
General told me the story as I have 
related it. 

; Move ment Calle d Patriotic 
During the conversation he told 
me he had been in Italy and Ger- 
many during the spring and sum- 
mer of 1934, making a detailed and 
comprehensive study of Nazi and 
Fascist organizations, and the part 
war veterans had played in their 

L success. 

“The whole movement is patri- 
otic," he continued, “because the, 
^fhimunists will wreck the nation 1 
unless the soldiers save it through ! 

“All General Butler would have 
to d6 to get a million men," he said, 
“would be to announce the forma- 
tion of the orgaaiaatifin and tell 

Plan Again Described 

He telephoned MacGuire in New 
York, and made an appointment for 
me to interview MacGuire. In or- 
der that the way would be cleared 
for me, he told MacGuire that he 
would make no final decision on 
his Fascist movement until I ap- 
proved it, and he suggested that 
MacGuire outline his entire plan to 

On September 13 I met MacGuire 
in his office, which is- part of the 
suite occupied by Grayson M.-P. 
Murphy & Co., on the twelfth floor 
of 52 Broadway. 

At first MacGuire semed unwill- 
ing to talk freely and discussed 
generalities for a time. Later, how- 
ever, he warmed up to the subject 
and told me substantially the same 
story as that related by the Gen- 
ius cral. 

i “We need a Fascist Government 
in this country," he insisted, “to 
» aave the nation from thp. Com- 
munists who would tear down all 
\ that has been built up in 1 America. 

| The only men who have the patriot- 
f ism to do it are the soldiers, and 
Smedley Butler is the ideal linfflT 
i„ He could organize a million men j 
tfVbr night." I 

jfhem it would cost a dollar a year 
tti join.” ■" — * 

We discussed that angle, and then 
the question of additional financial 
assistance developed. 

“It would not be any trouble to 
raise $1,000,000,” he said. “I could 
go to any number of persons here 
in New York and get it” 

Plan to Secure Arms 
He suggested that necessary arms 
and equipment could, be obtained 
from the Remington Arms company 
bn credit through the Du Pont fam- 
ily, which has a controlling interest 

in that company. 

“I am close +p J&seflident,” he 
continued, “because I served as a 
naval aid when he was Assistant 
Secretary of the Navy." 

t Check of the Navy Register 
shows that MacGuire was retired 
as an ensign, but there is no rec- 
ord that he served Roosevelt as 
a naval aid when the President 
was Assistant Secretary of the 
Navy. General Butler has no rec- 
ollection of MacGuire holding 
such a position, although Roose- 
velt inspected Butler’s posts in 
France and in Hayti during his 
eight years in the Navy Depart- 

think the Presid ent could be 
persuaded to name "General Butler 
as head of the CCC camps," Mac- 
Guire continued, “and that would 
give him the basis of an organiza- 
tion. However, if that doesn’t work, 
I have no doubt the General could 
enlist 500,000 men in a very short 

Legion Leaders Named 

“What we really need is & man 
on the white horse to save the cap- 
italistic system. 

“We might go along with Roose- 
velt and do with him what Musso- 
lini did to the King of Italy.” 

He shoved a letter across his desk, 
saying it was from Louis Johnson 
of West Virginia, former National 
Commander of the American Le- 
gion. MacGuire said Johnson wrote 
he would be in “to discuss what we 
have talked ” , IL 

“That’s just what we’re discuss** 
ing now,” he told me. 

During our conversation he men- 
tioned that Henry Stephens of 
, North Carolina, another former Na- 
j tional Commander of the American 
Legion, was interested in the plan. 

Barracks for Unemployed 

“Roosevelt hasn’t got. the real 
Splution^ to the unemployment situ- 
ation," MacGuire said, “but we’ll 
put across a plan that will be really 
effective. All unemployed men 
would be put in military barracks, 
under forced labor, as Hitler does; 
and that would soon solve that prob- 
lem. Another thing we would do 
immediately would be to register 
all persons in the United States, as 
they do in would stop 

1 a lot oi communist agitatorsTwan- 
dering arminrfWic* » 

When I lefFhim he planned to 
see General Butler during the next 
few weeks and to get the General’s 
acceptance to head the Fascist 

Shortly after my conversation 
with MacGuire General Butler left 
for a series of speeches, and it was 
not until September 27 that I talked 
with MacGuire again. * 

At that time he told me he was 
busy preparing for the American 
Legion convention, in Miami and 
had been unable to get to Newtown 
Square to see Butler. 

“Things are moving nicely," he 
said, “and the President is going 1 
td the Right. Soon Tugwell, Per- 
kins and Morgenthau will be out 
of the Cabinet.’’ : - 

Western* Wisher Informed 

He said he would probably be in 
touch with General Butler as soon 
as he returned from Miami. How- 
ever, General Butler and MacGuire 
have never met each other since 
that day. 

During Butler’s Western trip last 
summer an Indianapolis publisher, 
Anthony Flagg, told him that a 
group of New York brokers were 
organizing a Fascist movement and 
that he would be asked to lead it. 

“I didn’t give him an intimation 
that I knew about the thing," But- 
ler said, “but Flagg repeated Mac- 
Guire’s story, almost verbatim. 

“He even $3,000,000 had 

been raised ts> finance the move- 

Major General Smedley D* Butletff^hown here In the full dress "of 
the XT. S. Marines he formerly bossed, will tell a Congressional com- 
mittee that a Wall Street clique^franted him to lead a Fascist army 
of 500,000 to, take over the poweArf the Government. 










Congress of t\ )t Winittb States 

Ho « it of 3Repregentatibeg 


Watft}in%ton P 2B.C* 




Washington, D. 0. 
December 5, 1934. 

J. Edgar Hoover, Director 
Bureau, of Investigation 
Department of Justice 
Washington, D. 0. 

Dear Mr. Hoover: 

I am enclosing, herewith, by direction 
of the Chairman of the Committee, a copy of a communication 
from P. A* Green under date of November 23, 1934. Shis 
letter has been called to our attention and is being loolced 
into by our Committee but it also seems to warrant consider- 
ation of your department and the same ie being respectfully 
referred to you for consideration. 

Bespeetfully yours. 

P. P. Randolph 
Committee Secretary 


c. . 

Builders of Hoover Dam' 

-Boulder City, Nevada. 

Peter A. Green 
2820 East First St. 

Twin Palms Apartments #4 
Long Beach, California 
November 22, 1934. 

Bep. John V. McCormack ! 

U.S. Congressman 
From Massachusetts. 

Dear J 0 hn. 

I just read in the Long Beach. Calif, newspaper about you being on 
the investigating pommit tee of a Un-American radical group that is and has been 
trying to start avl.W.W. or®fascist War Veteran Army to overthrow President 
Roosevelts good sound Administration^^!! lat year or -two. As you know I have 
been working at Boulder Dam Nevada, since 1931 and 15 or us veterans started a 
Legion Post at Boulder City Nevada, and in 1932 1 was elected First Vice 
Commander of a oulder City P 0 st #31, I was also very active during Boosevelts 
campaign, being on the Democratic Committee at Boulder and Los Vegas, Nevada, 
as Congressman Jim Schruham and Senator Fat McCarran of Nev, were up and we had 
5000 votes in Boulder City and we asked friends of ours to change from Republican 
to Democrat so as to put the Democratic Party over. Now getting back to the 
Fascist Plot that has existed ikMoulder Dam with the true story of my experience 
with their agents to start a western movement to put our good President Roosevelt 
out of office for over a year they have been trying to poison the minds of all worlhg 
men in the '.lest as I talked to a lot. In March 1933 right after the President went 
into office I was approaced by two men stating they were the Representatives of 
an eastern new organization to be calle^American Fascist Veterans Association 
and that they had plenty of money to start” the Western drive if I would be their 
Leader in Nevada. I introduced them to our then Legion Commander Ray Allen, and 
they had quite a program to offer us if we would joip their ranks. 

They told us the second time we met them that Louie Johnson who was then 
National Commander of the Legion was one of their Leaders in the South and General 
Butler would line up the Marines also that the Veterans of Foreign Wars 
Department heads were all members in the middle West they were getting very strong 
and that the Republican National Committeeman was treasurer. I told them that it 
sounded like a Communist idea to me but they said no ti was to make our 
government a new party of equal rights $o all and put our President out of office 
and put in Fice Dictators I suppose Republicans. I did not want to lose ny job so 
I did not report them as you know this is a Republican Contractors J 0 b ana the 
Six Company were strong for Hoover. I would be glad to go to Washington and 
testify before any committee as I feel all good Americans should tell all they 
know about tnis organization and as I just started on a months leave of absence 
I could go by plane or any way yoy say to Washington. I was very glaa that the 
voters of good old Boston sent you back to Congress and that Jim Curley is now 
Governor of Massachusetts. 

Trust ing ~then~tb~ hear~fronr y o u-soe^an d - hn-pl ng the "M r a. and: you are in the* very 
best of health 

Your Friend, 

. Pete 





r * . 


- • f • w. ;J, 

‘ " . • : ' ■ V ■• ■'• * V -' •* 


£3 ''• •'.?; y”; : >£%; £ ';> 


Bay 16, 13» 

i’ Jm*> . 3 s£/ 0 )' m *r 

agpM«xm tor the assist*** ao the mown 8 bbmi, 

MR. fILLi* STAglH . 

Far your information thew la tranaaltted 
hurevith a oopgr of a latter addressed to the President 
of the United States by Mr. E. C. Rodwiok, dated at 
Benta Barters, California, March 18, 1938, relative to 
the findings of the Dickstein Congressional Investigating 
Caasittoe. This letter was referred to ae for appropriate 
attention* Bo investigation is being aade 4s to the 
allegations contained in the hatter. 

Very truly yours. 

John Edgar Hoover* 
Siree tor. 

Xnclosure Bo* 839086 


Attorney General. 

Mr. McMahon 

Solicitor General. 

Mr. Boyd. 

Asst, to the Attorney General 

Mr. Gardner. 

Asst. Attorney General Keenan. 

Mr. Caldwell. 

Asst. Attorney General Sweeney. 

Mr. Sornborger 

Asst, Attorney General Stephens. 

Mr. Moore. 

Asst. Attorney General Wideman. 

Mr. Holland 

Asst, Attorney General Blair... 

Miss Watkins 

Asst, Solicitor General.. 

Mr> Kearney. 

Mr. Stewart 

. Kidd. 

Mr. Hoover. 

Miss Waddle 

Mr. Bates 

Mr. Ford. 

Mr* Beardslee. 

Miss Fitzgerald. 

Mr. Lawrence. 

Mrs. Wade 

Mr. Smith - A.P.C.. 

Miss Biggs. 

Mr. Tolson. 

Miss Windsor 

\ k . 

//j it % eJtzj ' cam 

' ^ % V Saif^Barbara, Cai'iffr njA, 

Mar oh 18th, 1935* f ' 

• ! Pranklin D. tfossevelt, 

! \ 

+■ ■ » v. 

^President of the Halted States, 

• ■ V 

Washington, D*C* 

My dear Presidents 

c-- - 

I h^ve long hesitated "before deciding to write to you regarding the 
| Piolsstein Congressional Investigating Committee whose mission was, to seoure evidence 
I concerning a conspiracy to seized the U.S. Government "by a Fascist group, to he l.ied- 1 - 
i by General Sm&dley Butler at the head of 500,000 men* 

l Thinking that you were familiar with the Committee's findings in which 

I suppressed evidence was unconpl iment ary to yourself, ns^ expected in die time you would 
I inform the public that you still believe in it and intended to support origans! American 
■ ideals and fairplay* 

According to the ’Hew Masses**, Jan* 29th and Feb* 5th, the Investigating 
Committee traced the conspiracy to financial leaders of Wall street and far that reason 

the Committee suppressed its most vital findings • 1)3 ball 

findings suppressed - two of which involve the President* 

a few of ■Che fourteen 

1st - " She Dichstein Committee refuses to explain why it suppressed 
evidence of fascist organizations and of fascist movements*" 

4th - "2 hat General Butler named a fascist organization in rh ich 
some leaders of the American Jewish leaders were active - and that this testimony was 


RECORDED & INDEXEH a ^ ' t u <*j, ^ /** 

{0 f O 

7th - "That the most powerful fascist organizations are controlled 

by financiers whose interests are controlled by J* P* Morgan's interests* " 

.1^0 SEP 23 1S(>4 

9th - "That Grayson fit* P* Murphy involved in the plot to organise 


fVf- lA J; f .-l - 4 ‘ 

a fascist army, la a Morgan nan* and one of : 'hose who originally financed the start- 
ing of the American Legion for *Big Bis iness* and who supports disseminators of anti- 

Semitic propaganda; and that knowing all this the Dickstein Committee never called 

Murphy to explain his activities.” 

10 - ’‘Shat a Hearst can tied up with Morgan interests captured 

control of the American Legion, vhich Butler was asked to lead as a fascist army; and 

that this man, summoned to appear befori the Dicks te in Comnittee was never questioned 


after he had had a secret conference '/ith President Roosevelt.” 


11 - “Shat the American Liberty League wqs named hy Butler and 
this fact suppressed by the Diokstein Comnittee. She League is controlled by Morgan, 

Du Pont interests as well as having !7a.'burg representation on it”. 

13 - “Shat Max ’Yarburg, brother of Felix and director- of the 
steel trust of Germany, which orginally financed Hitler are in the United States trying 
to get credits for Hitler's government in copper purchase.” 

Quoting now from further suppressed testimony of General Butler; 

“You know the Pres ident is weak. He will come right along with us. He was bcr n in this 
class. He was raised in this class and he will coma back. . He will run true to form. 

In the end he will coma around. But ve have got to be pr epared * o sustain him when 
he does.” * *" * 

If the above statements are veridical - there is strong evidence 
that they are - then we are left to infer that our President is not only aware of the 
existence of a strong financial group plotting to overthrow the American. govenWnk ' . 
and to set up a Fascist Dictatorship, but also that he is in sympathy with th^s 
unpatriotic mover® nt , which we hesitate to believe^leaving the people hnltlng-Jbetween 
two opinions, uncertain where their elected President stands. 

My only object in writing this letter is to mildly suggest that 
the President take the people into his confidence and openly state what his relations. ^ 


are with regard to those Fascist groups supported by powerful financiers who have brought 

Mr. Nathan ... 

CRIME FQE — Gen. Smedley Butler, 1 
'dynamic former Marine corps commander, ad- v 
dresses 1,000 women in Cherry Valley School* 
of Garden City, N. Y., on crime, . The general, f 
in his usual two-fisted manner, laid a verbal 
barrage on crooked politicians, the Hauptmann ' 
trial and gangster films, as well as many other 
subjects, and said people generally have^torJc 
gotten God and the Bible. — International News' 
photo, r; 

Mr. Tolson 

Mr. Backus 

Mr. Baughman. 
Chief Clerk 

Mr. Cleggs 

Mr- Coffey 

Mr. Edwards .... 

Mr. Egan 

Mr. Harbo 

Mr. Keith 

Mr. Lester 

Mr. Qulhn .... 
Mr. Bqhllcler. 
Mr. Smith .... 
Mr. Tamm.... 
Mr. Tracy .... 
Miss Gandy.. 




Decwaltsr 12, 19>4 

Mr. f. P. Randolph, 

Special Coas&ttee on 0r.-ABerioan Activities, 
House of Representatives, 
fr* shington, B. C* 

la^r-Mr. Randolph* 

X Have received your latter of December 5 , 1934 , transmitting 
a copy of a consuoioation addressed to Congressmen MeCornaefc, under date 
of Koveafesr 22, 1934 by P. A. Croon* It is noted that your ConasittvS is 
giving attention to the contents of itr. Croon** letter. It does not 
appear fro® Mr, Green’s letter that the facta ns outlined by hi® con- 
stitute a violation of any Federal Statute coming within the jurisdiction 
of tills Bivision, end accordingly no action will bo taken in tills mfctsr at 
the present tine. In the event your inquiries concerning Mr, Green’s 
statement develop infomrtion indicating a violation of a Federal Statute 
t will be pleased to bo so advised by you, in order that appropriate inquiry 
nay bo conducted. 

Gincarely yours. 

John Edgar Hoover, 


ifir&rral (Bureau of Jnoeatigation 

United states department of JJuatfce 

1300 Liberty Trust Building 
Philadelphia, Pennsylvania 

May 18, 1937. 



Federal Bureau of Investigation, 
Washington, D. C. 

Dear Sirs 

On the evening of Sunday, May 16,1937, I had 
the pleasure of meeting and talking with Major-General 
Smedley Dfi'gutler, U.S.M. C. H., at a meeting of the 
PemTIyT^ Association for the Blind. General 

Butler was the principal speaker, and I also appeared 
on the program. 

In conversing with me, he informed me that 
it ms his opinion that the Bureau is the most valuable 
and productive agency which the Federal Government now 
has, and in other respects. General Butler expressed a 
high regard for the Director and for the Bureau. 

Very truly yours, 


Special Agent in Charge 






j 3 :; •:* t c t j J V*iSTJ SAT 10 N 

iVr J ^T1CE 

AT * 
,o v M 

: H*» John Edgar Hoover 

?o4w*l Bureau of Investigation 
Haahtngton, D. 0* 

Dear Hr* Hoover: . . Raj Fine Compliments paid Director 

and Bureau by Iteje? General 

/ Bnedley^hitler* - 

' While attendtp^ the recent Annual State Coarentionef tff» 

Idaho Department of tb&Ameriean legion at Pocatello* Idaho, Aggast 
21 and 22, 1938, I reamed say acquaintance with Major General Itefldley 
Butler, retired, formerly Camaandant of the United States Harinaa. 

During spy stey at the Convention, General Butler and I 
talked for approximate ly an hour on natters of mutual interest* Re • 
was very enthusiastic about hi© recent visit and trip through th#^.^.’ 
Bureau in Washington, and asked me to give you hie heat regards e)&" 
cordial thank* for the court* ey extended him upon thin •occasion*''*’ 
fiavernl times in various group* of delegate* to the convention, he 
santloned you and the Bureau in highest t enas, 

Defteral Butler and I both addressed the convention on 
August 22, 1996, aadat the annual banquet on the night of that" date 
We were both called cm for additional talks* Oenenal Butler* * talk 
followed nine at the banquet end he took occasion to pay high tribute 
to you and the Bureau. During the course of hi* remark* at this time 
he called on the American Legion to support you and the Bureau in every 
way, and to see that the politic lane did not Interfere with you and the 
fine work you and the Bureau are doing* 

During the course of this same informal talk at the ben- 
quet he stated further ,f Uith the possible exception of the Karins 
Corps, the Federal Bureau of Investigation is the finest organization 
in the world today”. General Butler’s remarks concerning you and 
the work of the Bureau were greeted with applause by approximately 
three hundred legionnaires and their wive* at the bosquet* H* was 

: '■ _ •• - *v 

‘ ‘ 

. ‘ 5 . . 


- : %|Jtaiiksd cordially by r» on your behalf for bis easy kind references 
to the Bureau end his continued interest in you and the work of tbs 

It la euggested that 70a night desire to sand kin a 
personal lattsr of thanks, oentiaaing specifically his resjarka at 
tha banquet sad assuring hi* that you do not feel badly about his . 
listing tha Bureau after the Marine Corps, sttlah ha served so 
faithfully and well* General Butler's lliiladslphia, Pennsylvania 
address, share 1 understand he is returning shortly, is In the 
Bureau* s flies* 

dinocrely yours , 

•;. . ... t \ ... • . ' 

V / .• J , : 

h. braiis lasum , 

KltSLtFI) Inspector. 



- 2 - 



Goshen Roacl, Newtown Square 
Delaware County, Pennsylvania 


September 17, 1938 

Honorable J. ^dgar Hoover, 

Bederal Bureau of Investigation, 

■United States Department of Justice, 

'.'ashtngtoh, D. C. 

Dear Mr. Hoover: - 

Thank you for your nice letter of September 2nd* 

It is always a pleasure to run across Mr. Lester and sit 
in admiration when he gets off seven hundred words a minute. 
He certainly is a delightful person to most and. I always 
lock forward to hearing him. 

It has bean my habit never to let an opportunity 
go by to give your outfit a boost.. It is, to my mind, one 
of the few real and decent institutions we have. 

Thanking you again, I an, 

Sincerely yours, 

3/ S. D. Butler 

Smedley B. Butler 




r > > , . * 

■ W 

jii asm ivniqtxq 



September 2, 1938 

Major General Smedley Butler 
Goshen Road 

Newtown Square, Pennsylvania 

Dear General Butlers 

I have just been advised by Inspector 
W. H. Brane Lester of the splendid addresses which 
you delivered on the occasion of the Annual dtate 
Convention of the Idaho Department of the American 
Legion at Pocatello, Idaho on August 21 and 22, 1938. 

It was very kind of you to comment so - 
favorably upon my administration of the FBI, and 
I am deeply appreciative for your expressions of 
faith and confidence in the work which we are doing. 

It is my understanding that you advised 
that "With the possible exception of the Marine Corps, 
the Federal Bureau dP Investigation is the finest 
organization in the world today." I assure you that 
coming out second best with the Marine Corps is not 
a matter which would make us feel badly in any way, 
particularly since we have a very fond spot in our 
hearts for that organization, which you have served 
so faithfully for many years. 


With host wishes and kind personal 

Sincerely yours, 

CC-Hr . Lester 




■r- ■ 



January 25, 19#$' ' 

3 $(/ 7 -r<- 

Major Genaral 8nedley D# Butler 
Goshen Hoad 

Newtown Square, Pennsylvania 

Bear General Butler* 

Tour coenunicatloo dated January 13, 1940, 
has been received and I an indeed pleased to learn 
of your comnendatory remarks concerning ay addresses 
and the various publications you have received in 
the pasta 1 an glad to forward this material to 
you end 1 appreciate the use you are Making of it« 

My I suggest that when next you ere in 
Washington, you do not fail to call at ny office* 

With best wishes and kind regards, 

Sincerely yours. 

‘ter rev 

r 5 

I K>. ‘i *- 4 

0 J- :Yi !YI U N i w/t i i J \\ u • v : , 
M A r i E O 

r-i m. 

.•'iVOf.Y. (,*F sKVWn^a':.. 

U. S. O.fAHfWENr •> iCSltCt 

* i./, * i.- : * 

■ JuJf. \ 

1 Mr, 

| Tc-iir .'5* 

| ii-;. .. - 

5 iUos G'axiy ... 




/ . 


January 18) 1940 

Hon. J. Edgar Hoover* Director 
Federal Bureau of Investigation 
Department of Justice 
Washington D.C. 

Dear Hr. Hoovers 

In the past year you have been good enough to send me a 
number of pamphlets and copies of speeches you hive made all over the' 
country) which have proved extremely interesting and valuable to me in 
ay qwn travels round the country and I am writing this note to thank you 
for them. 

I never leave an opportunity unused to quote from the 
material cited therein and am expecting to do so again this cooling week) 
when I have been asked to speak on Crime in Waterville* Maine. 

With best wishes for 1940 and kindest regards) I am 
Very sincerely yours* REQOBDJ3© 

' aii&iL '■£ ■ '• 1 ' , 

. JAN B9 1940 




1 - Mr. Simpson 

March 30, 1961 

Tour letter dated March 22, 1961, with its 
enclosure, has heen received. 

While I mould like to be of assistance, the 
FBI is strictly an investigative agency of the Federal 
Government and does not have the funds or the facilities 
to conduct the research necessary to answer your inquiry. 
It is suggested that your local library may he in a 
position to help you in this matter. 

Pursuant to your request, I am returning the 
newspaper clipping you submitted with your letter. 

Sincerely yours. 

John Edgar Hoover 

Enclosure i J 


Correspondent edc^osed a’ clipping from an f ■ 
undated and unnamed newspaper which quoted Major General; 
Smedley D. Butler as once having stated while he was in :> 
the Marine Corps that he was a "high^plass muscle man for 
Big Business and Wall Street" and helped make other 
countries safe for American oil interests. Correspondent 
tit* requested the return of this clipping and a copy has, 

'hjr therefore, been made for Bufiles. 

r_Z RDS.-pw (3) 



I § 




There are numerous references in Bufiles to 
Major General Smedlev D. Butler . He was at one time 
Commandant of the UnitedState s Marine Corps who retired 
in 1931 and died on June 21, 1940. Only the main file 
on Butler has been reviewed and it consists of correspondence 
with him indicating our relations with him were very 
cordial. (62-33617) 

Bufiles i ndicate we have had some limited b6 
correspondence wit h i I in 1952 at which time he b7C 

wrote concerning crime statistics. Also, in 1946 while 
Editor of an American Legion magazine in Chicago, 

Illinois, he was commended for his edit orial o n communism. c : 
The Chicago Office in 1941 advised that | | was bo 

considered as "completely unreliable" for having indicated 
he had information of value regarding Japanese activities 
in the United States and subsequently stating he was too 
busy to furnish the information. (65-36008) 

To determine whether General Butler made the 
statements alleged in the newspaper clipping would require 
considerable time and research. This time and effort 
does not appear to be warranted since the statements, 
if made at all, would necessarily have been made over 
20 years ago inasmuch as Butler died in 1940. 

~ 7 7 ~ 



' 4 





8200 SOath. Chappel Ave . , 
Chicago 17, Illinois. 



Two Down Non© to Go 

March 22, 1961 

Mr. J. Edgar Hoover, Director 

Federal Bureau of investigation 
Washington, D. C. 

Dear Mr. Hoover: 

A few days ago, addressed to me and postmarked Chicago, there 
arrived in the morning mail a publication labeled "official 
organ of the Socialist-Labor party." 

MY wife saw me glance at it and then toss it in the waste 
basket, and remarked, "judt because you » re such a hater of 
Socialism and Communism, is no reason why you should be afraid 
to read what they have to sey, even if it would never alter your 
views or change your opinions." So I retrieved the paper and — .. 

gave its contents a cursory perusal until I came to the enclosed 
item, which I cut out to show to the Americanism chairman of my 
Legion post. 

' .J 

To me it seems incredulous that a man of smedly D. Butler >s 
calibre would ever utter such a statemement, though i know he 
was always outspoken to the pplnt of crudity. I met him in the 
first World War while serving with the 81st (wildcat) Division 
and at the time he headed the SOS in St. N&zalre. 

HI if it is not imposing upon your time and tolerance, I'd 
/// appreciate it if you would check on this item and advise me if 
/// it truthfully quotes any statements by General Butler. If the 
I quotations are correct, I'm licked, if they are false (and I 
hope to God they are) I'm fortified with ammunition which can 
be used effectively not only by nyyLegion Post but by the 
National Department and its nationally-circulated magazine.^ 

«„ „ .. REC-61 

Will you kindly return the clipping to me at your conveni 
pax vobiscum and vaya con Dios. 2 Q 4 - - b6 




ience?. ^ 




very e arnestly yours. 


• ■ * • • 

U.S. Capitalism and the U.S. Marines 

.-/;■- :wv 

i r ; « 
vv.' . 

V; ... Lest anyone doubt, the degree of cynl- 

f I, cism with whleh capitalism uses 'the na- 

t ion's armed forces In its selfish Interests, 
we quote the testimony of one who was In a : 
7 *s^V ; .position to know, Major-General Smedley 1 
D* Butler: ** 

•4? ‘ r R P ent years and four months in a©* 
;v . c Zt :< Y -* Ive Knlee as a member of our- country's' 

1 *■’ L most agile military . force — the Marine 

Corps. . . And during that time I spent 
!\ r vV /V f most of my time being n high-class muscle 
; v •* ' [ v man for Big' Business, for Wall Street, aufl. 

h ; for the bankers. In short, I was a racket-, 
s* ■ *! ; for capitalism. • . . * 

^ j * '"Thus I helped make Mexico and espe- 
•*r-L l daily Tampico safe for American. oil Inter*-. 
‘.Av/dir > ests In 194. 1 helped make Haiti and Cuba 
A-.-lr* a decent place for the -National City Bank ‘ 
boys, to collect revenues in. ... .1 helped 
» parity ‘ Nicaragua for the, International 
“SS banking house of Brown Brothers ln !90#\ 

■;***. - if 
Vf :vf 

' •i . 

1913. I* brought light to the Dominican Re- 
public for American sugar Interests in 
1916. I helped make Honduras ‘right' for 
American fruit companies in 1903. . In 
China in 1927 I . helped to see to it that 
Standard Oil went its way unmolested. . 

'‘During those years I hod, as' the boys 
In ' the back ro,om would say, a swell 
racket. I was rewarded with • honors, 
medals, promotion. Looking back on it, 1 
feel I might have given A! Capone a few 
hints. The best HE could do was to. oper*. 
ate his racket in three city districts. We 
‘ Marines operated on three CONTINENTS.? 
j ‘‘Common Sense," November, .1935.) 

But, as the “Wall Street Journal" asks, 
Aug. 12, “How would the JLS.' explain to , 
Latin America and the world the- differ- 
ence between the. Marines In Havana and 
tliie . Bad Army • In ' Budapest ? ” . 





/ / / / / / . 
4 / — Lr / r; w/ 

Personal & Confidential 

'August 8, 1938. 

WL . SP? ' 

& A? Art 


r X 

s y 

I fe** ?""■ ■ 

? . ?"«-.%qt< 

| &. \ 

#sv V.~ .• 

. Confirming wy conversation with you of yesterday a ftermooa, 
daring the course of the visit to of flee yesterday , General 8*edl«y 

Butler informed me that about e year ego he received a long distance 
telephone call from FathaiTCouahll n . 8c stated that this call ease to 
hia at his homo in P«nn*ylw»ia| that it was in the evening and he had a 
number of friends with hia for dinner, one of whom waa the Editor of a 
I Philadelphia newspaper, which X understood General Butler to any wet the 
i Philadelphia Inquirer* General Butler stated that Father Coughlin ad- 
dressed bin over the telephone quite faailiarly, calling him for the 
first tisie, "Ssadley,* Father Coughlin naked his whether he. General 
Butler, would he willing to head an armed force of men who he. Father 
Coughlin, proposed would proceed to tfexlea and overthrew the Mexican 
Government* Father Coughlin stated that the Government in Mexico bed 
been attacking the Catholic Church and was strongly Csmmunistie, and he. 
Father Coughlin, had the men and the guns with which to effect Mae over- 
throw of the Mexican Government, but that he n ee d e d a men who knew mili- 
tary tactics to head this expedition and wanted fimura^nitlar to assume 
this Job. r ' 

General Butler stated that ha informed Father Gendlin 
that he. General Butler, was a retired Marins Corps Qffieer, and as such 

- wae-an Officer of the Government and that he could have mo part la such 
a movement as Father Coughlin suggested* Central Butler further stated 
that hm said to Father Coughlin that if such a movement mis initiated the 
President of the United States would call out the standing army to prevent 
them from getting very far in such an expedition* Father Coughlin's re- 
ply was that they need not worry about President Roosevelt, because "they 

* would take cere of him 00 the way down** 

; . / 

r General Butler informed ae that he had hia friends who 
iere at his houaa on this evening to listen in on this phone conversa- 
tion from an extension telephone era the second floor of his residence. 

[. General Butler stated he recognised Father Coughlin** VoieeV and that 
following the call he had the call traced and it waWfound that it had 
tfceh hissed from fhe\£hrine of the little Flower, at\Detroit, Michigan* 

- fonstm. 1 Butler stated further that he had hie friends make sworn stete- 
., ri 0*i%4 following this incident in order that he might have their state- 

« matter of record* 

•' > ( ,.>*1 jwrrawrwse 

^ |Y4 4 ,/*' v abvt^ 

v' ^ ***( 

s»r~ — - 

The A ttosUsy General 

2 • 



General Butler also added that during the eeurae of tha 
eocaars&tion som reference was node by Father Coughlin to hie daalra 
to talk with General Butler in Ve* fork the following Week, and that 
subsequent to the phene oosnraj^Uen, tha next day or too thereafter, 
General Butler reeelvM a talegraa ton* Father Coughlin, Informing 
hie, General Butler, that ha would be ttaable to keep the appointment 
which he had tentatively node with General*a/iYer in See York* Gaaaral 
Butler stated that ha had thie telegram which ha considered to corroborate 
the eonrereation he referred to hawing taken place. 

General Sutler stated that follswing this conversation 
with father Coughlin he dieeueeed with bis friends tie were hie gusite 
on the evening it ooeurred, as to shat action ha, General Butlar, 
should taka and ha stated it ear the conseufNts of opinion that he 
should do siothing st that tine, hut wait to «io ehat furthar develop- 
nonte took plaoe end try to get soee further infornstion or corrobora- 
tion. Consequently, General Bntlar did not take a$r further action in 
t;!xhis natter at that tins. 


General Butler stated that ad 
-benber of the Pennsylvania Coanittee for thi 
which ie -the organisation that Father Cough! 

or ten days ago a 

Kin to inquire if Father Gendlin had made any proposition to hia to lead 
an arnad foree against Mexico. This nan told Qenerel Bailor that at a 
aeeting of the Bxeeuiiwe Copsl ttee of the Pennsylvania Branch of the 
Union of Social Justice eereral weeks ago can of the neabera of the saaw 
etated that he had heard that euch an offer had been nade to General 
Butler by Father Coughlin end that if euch was the fast it use inproper 
and that if tha etf«y Ue* not true, it should certainly be dfMlad, The 
•saber of the CossittM she west to see General Butler stated that follow- 
ing this nesting of the Bxeeutlve Committee he vent te Detroit and eav 
Father Coughlin and naked hia relative to this incident* Father Coughlin 
did not sake any denial ef tha incident, but suggested that he, the nan, 
eall upon General Butlar and ascertain what General Butler had to esy 
about it. The evaslvenees ef Father Coughlin created sene suspicion 
In this nan* a aind and he consequently celled upon General Butler, who 
told hia the feats as he, General Butlar, knew than. 

General Bntlar stated that he had bean very such worried 
sh e et thie incident but that he was not inclined to report it to hie 
eayarter officer, sanely, the Conaandlng General ef the Marine Corpe, 
or ii the Prealdeat, because he thought that, f iret, it night be considered 
a political nova upon hie part as he realised that the expose of such a 

/ 'i- \ 

The Attorney C«n«rtl 

3 - 8-36 

story at this time night have political repereuasione, and secondly, 
many par eoaa sight think that ha, General Butler, was a fool and that 
vlib incident had not occurred. I iaforaad General Butlar that 1 thought 
« natter which ha certainly should reduce to writing and submit 
in w em or aa dua fern to the Major General of the Karine Cor pa 
sittijpb, Oeneral Butlar, waa retired, aa a Karina Officer • General 
Butler stated he waa undecided as to what ha should do about it aa it 
worrledhim considerably, but ha thought that toe beat thing for him to 
do at the present time waa to take no action aa any action ho might 
take would bo misconstrued • 1 pointed out to Generhl Butler that his 
remaining silent might later bo misconstrued if the story became known 
publicly in that bo would then bo eritieiaed for hawing not reported 
it to the proper authorities. 

In too course of toe conversation General Butlar ctated 
that ha had leamsd from some aw»narlnc of a theft of one hundred 
•Snaring automatic rifles from the Raritan Arsenal in Kaw Jar a ay, which 
had been hidden on the aetata or John D. Rockefeller, Sr., im Kaw Jersey . 
He stated that Mr. Bookafeller knew nothing about tola, of course, as 
his estate was quite large and it wee believed by the parsons respon- 
sible for the theft that it seuld be an ideal piece to hid# those 
weapons. General Butler stated ha corroborated this report which had 
bean made to him in conversation with too Ouarteraaater of one of toe 
arsenals, who corroborated the theft of the on# hundred Browsing automatic 
rifles and informed General Butlar there had been a lose of fifteen auto- 
matic rifles from his arsenal. Oeneral Butler stated that of course ha 
did not know those gone boro any relationship to the statement of father 
Coughlin that ho had too non end the anas with which to start on an 
expedition against Mexico, but ha considered it at least significant. 

Present during ay conversation with General Butlar waa 
a personal friend of General Butlar, a lady, as wall aa T. V. Davssy, 
one of the supervisors attached to my office in the Bureau. Following 
gr conversation with General Butlar he want on a tour of the Bureau 
with Mr. Dawsey and the lady, and I had occasion to see you relative 
to Same other matter* and reported verbally to you in substance the 
above* When I returned to ay office Mr. Dawesy, who had then completed 
the tour with General Butlar, informed me that General Butlar had stated 
to him during too course of the tour that he proposed to got all the 
facts together and bring then to me, together with the affidavit e which 
his friends had made an the evening of toe conversation which he had 
with Father Coughlin. Mr. Dawsey also stated that General Butlar had 


8 - 4*36 

the Attorns* General -4- 

requeeted Ms to aak ne not to say anything about the natter ahieh ho* 
General Bailor* hod talked to ne about to anyone, cautioning tho ittorMgr 
General, «o he knev ha wee ny superior of floor. General Butler ill talk- 
ing with m had not requested no to treat the natter confidentially , nor 
could I hare done so if he had node the request in view of the charactar 
of the sene. 

I asked Sr. Dawsuy to prepare a nenorendua relative to 
his recollection of the conversation ihieh he heard between General 
Butler and sgraelf* end I en attaching hereto* for year infornetion* a 
copy of Mr. Dewsey’e nenoranduy dated August 8, 1936* eovsrtog^.thie 

If I receive any further word or infornetion from General 
Butler I will, of oouree* promptly advise you of the eene. 


John Edgar Hoover* 




< ^ CO 


^uram'tif ^Mtaesttgatum 

p. ^8. department of ^Justice 

Pfosljingtoi,- JL <!L / 

August 8, 1936. £>/ 

i l'llr*. I>tlian 

r.Ir. 'T^ffon 

f Hr* r^.r.*j!unan 

tif- Cleffg „ 

Kr. Co<Tay 
Mr. Dar/aey _. 
Mr. Edwards . 
Mr. I3gan 

BIr. Fcxwozth - 


• BIr. Gl&vin ... 
j ltlr. Harbo ... 
M". Joseph 

i- 7 . Sorter... 
Mr. Kichcls. 

' Mr. Qulais 

S' BIr. Sclulder- 


■; T_r. ’Tracy..., 
|J Miss Gandy,, 

As a matter of record it may be stated while jl 

in the presence of a personal friend of General Butler's, |J 

Miss$Hunka (?) , the Director, and this Agent, General 

Smpfl 1 fljfteutl sc, stated of his own free will and accord 

thathenad something on his mind and that he would 

like to get it off. He stated that while in ' Philadelphia 

he used to bring such matters to the Secret Service 

Department, and if the Director wanted him to he would 

tell him the things that he had on his mind. The . c; ' 

Director stated that he would appreciate knowing the *••• ' v \ 

same, and General Butler stated that quite awhile ago ' ' ; '•* 

Father Coughlin telephoned him and asked Butler if ' r- } 

he would command an army of approximately 260,000 men t >' 

to march to Mexico and overthrow the Mexican government 

that was at that time picking on the Catholic Church, 

that the Mexicans had kidnapped the archbishop, and ^ 

that Coughlin stated that he had the financial backing n 

and the men and the arms, and all he needed was a leader & 

He stated that he thought that Butler was the 1 - man . 

RECORDED 6 INDEX!-;/ / X. - ^ t C 1 -• 
Butler stated that he recognized Father 
Coughlin' s voice and as soon as he recognized his voice 
he requested a friend of his, an editor of a P hila^^^iia^ i S3S 
paper, to go up stairs and listen in on the conversation 
on an extension telephone. He said that he told Father 
Coughlin that he would not do this because it. amounted 
to treason, that he was employed by the Federal government Qf • 
and that if Coughlin started such a movement the President^^?’ 
of the United States would assemble the militia and stop 
such a movement. Coughlin's answer to this was that I 
should not worry about President Roosevelt because they 
would take care of him on the way down. Again Butler 
stated that he told Coughlin that this amounted to 
treason, and that he would not talk to him about the 
same over the telephone. Butler said that at the 
conclusion of the telephone conversation, this telephone 
connection was traced and that it was traced back to 

m 27 1935 


; fa- 

Memorandum for the Director. 

- 2 - 

August 8, 1936 

He stated that Father Coughlin immediately 
confirmed that telephonic conversation by a telegram 
and that he had this telegram in his possession. 

General Butler stated that he also had the affidavit of 
each of the visitors at his home that night who 
listened in on the conversation. General Butler said 
that he had previously gotten in on some dispute in connectin 
with the Fascist movement and was called on to testify 
before the Congressional Committee for participating in 
the same. He informed the Congressional Committee that 
he had told the Secret Service Department of the govern- 
ment about this and that they hadn't done anything about it. 

General Butler stated that he knew that 
Father Coughlin had a backing of approximately fifteen 
million people in this country, and also had good 
finpicial backing by some of the armed companies, 'naming 
the/Remington Company and the^ DuPonts S** 

At the time of the telephone conversation with 
Father Coughlin, General Butler stated that he talked 
it over with the editor of this Philadelphia paper ^ and 
that they decided that the best thing to do would be to 
wait for more movements from Father Coughlin, that' it 
would be impossible to bring the thing out in public, and 
General Butler stated that he was scared that some of 
Coughlin's men would bump him off. 

General Butler stated that he realised his 
oath to the federal government but what he wanted to 
do was to develop the thing in its entirety and then 
bring it out in the open, and that if he made such 
statements now it might cause some disturbance and the 
people would only call him a fool. He commented that 
he didn't know just what to do about the whole thing, 
that it had caused him considerable worry, and he was 
just waiting for another move from Father Coughlin. 

General B u tler stated that the other day a member 
of the Executive Committee of the Catholic organization 
that is backing Coughlin came to him and asked him if 
Coughlin had made such a proposition to him. The man 
from Cougnlin's faction informed General Butler that he had 

Memorandum for the Director. 

- 3 - 

August 8, 1936 

previously asked Coughlin whether or not he had requestea 
butler to head this movement and Coughlin refused to deny 
it and told this man to go and ask Butler. It was this 
that prompted him to bring the question to the Director. 

General Butler stated that very recently 
an ex-marine came to him and showed liim a Chinese ring 
which c. certification that he was a dope smuggler, 
and told him that he had just helped smuggle one 
hundred Brownie .automatic Rifles from one of the arsenals 
lor this group of men, apd that they had hidden them 
on the estate of John D.^j Rockefeller. He stated that 
Rockefeller knew nothing about this but that the men 
had hidden the rifles there so that they would not be 
found. General Butler stated that he was quite disturbed 
over this. He decided to check up on this so he went 
to the quartermaster of one of the arsenals who was a 
friend of his and asked him if he knew anything about the 
rifles being gone, and the quartermaster informed him 
that one hundred Brownie Automatic Rifles had been 
stolen from one of the arsenals, and that that srsenal 
of this particular quartermaster had also lost fifteen 
Automatic Rifles. 

General Butler stated that he knew the 
present political situation and if such movement was 
developed, it could very easily throw the next 
election either way and that he did not want to bring 
this out in the open and be criticized. He knew that 
his integrity and his honesty had never been questioned, 
and that he thought the Director could see through the 
whole thing. 

He stated that it seemed to be Coughlin's 
intention of starting an armed revolution in the United 
States, and that Coughlin had made the statement that the 
voters of the United States would not have an 
opportunity to vote after the next election, indicating 
that there was going to be a revolution and a dictatorial 
form of government set up in the place of the present 
democratic government. 

Butler then informed the Director that he 
wanted to turn this information over to him end that 
he would get all of the facts and bring them into the 
Director at a later date. The Director informed him 
that he would be glad to receive this information. 


■nr , 


Memorandum for the Director. 


August 8, 1936. 

bhile going around on the tour, General Butler 
informed this agent that he had the affidavits of the 
various parties in connection with this plot, and that 
he had them locked in his safe in his home. He added 
that he would bring them to the Director later. He 
stated that he r.'ould wait for another movement from 
Doughlin before he told the Director anything else, and 
as soon as Coughlin made another move he would immediately 
come to Washington and report the same to Mr. Hoover. 

General butler informed this agent that this 
thing was just worrying him to death, that his grandchildren 
had been threatened, that he had been threatened, that 
he expected to be murdered and. if so it would be at 
the hands of Coughlin and his faction. 

At the conclusion of the tour, General Butler 
stated again that he was going to bring this information 
to the Director and at this time he requested this agent 
to inform Mr. Hoover not to say anything about this 
to the Attorney General Cummings. It may be stated that 
while informing the Director about this movement Butler 
made no statement or no request that this information 
was to be kept strictly confidential by the Director. 

After General Smedley Butler had departed, 
this agent immediately reported his request to the 
Director, and at that time the Director informed this 
agent he had already submitted this information personally 
to the Attorney General. 

As a matter of record it may be stated that 
the above conversation took place in the Director’s 
office while making a tour of the federal Bureau of 
Investigation at approximately 4*30 p.m., August 7, 1936. 

Respect fully, 
Tom W. Dawsey.